Is it time to share your home with other families?

It may be time to explore sharing this wonderful home with other families and allow them to enjoy all the amenities that your home has to offer.  The real estate market in Breckenridge seems to be getting some of its legs back in the last few months; however, that doesn’t mean it’s necessarily the right time to sell.  It really just depends on the specific situation that is unique to each vacation home owner.

For instance, you may have purchased your home during the incredible market run up that happened in the years 2005-2008, and while things are looking better these days, the drastic loss in values that were experienced in 2009 may prompt you to wait a little longer before considering selling your property.

However, if you were on of the many who has owned in Breckenridge for several years, you may feel that the appreciation may not be at its peak, but you’ve had years of enjoyment from your vacation home and now is a as good of time as any to sell and try something new.

For those who feel the need to hang on a bit longer, let the market stabilize, and return some of the lost value from 2009, the answer may me renting your home to guests on a short-term basis.  With a competent vacation rental marketing specialist and good management, short-term rental income can give you the best of both worlds, be allowing you to continue to enjoy all of the benefits of vacation home ownership, yet off-set the expenses with income generated from the short-term rentals.

BONUS – A better return on your investment!

How much you continue to use your vacation home will certainly determine the amount of income the property will generate on the vacation rental market.  I work with owners who use their home several weeks a year, as well as owners who don’t use their home for personal use at all.  These owners now consider their vacation home a long-term investment property, and are taking advantage of the revenue generated from the short-term rentals to enhance the value of their investment.

Whether you just want to generate an extra $20,000 per year to off set the expense of personal use or generate an extra $60,000 per year to really make a dent, the value you receive is a better return on your original investment.  And maybe most important of all, the value of a renewed attitude toward your vacation home and the real reason your purchased it in the first place.

During the 2000′s Breckenridge real estate sales were on fire, but at the same time prices didn’t get crazy like they did in other mountain town markets like Vail and Beaver Creek, where you could pay as much as $3,000 per square foot for a prime location, newly constructed condo.  Imagine paying three million dollars for a 1,000 square foot two bedroom condo!

Breckenridge real estate took a more consistent and steady increase in price during the last decade until peaking in 2007.  And of course, plenty of people got a little “real estate drunk“, jumping on the bandwagon of owning a piece of this charming mountain town.  But that doesn’t mean they made a bad choice, as most bought for the pure reason of enjoyment and having a place to retreat from the daily grind, relax and reconnect with family and friends.  Isn’t that really what it’s all about…

But what about the events that have taken place in our country over the last few years?  The “Great Recession” has taken it’s toll on many of us, and in many different ways depending on our individual circumstances.  Circumstances have changed for many of the owners that purchased their Breckenridge vacation homes during the last decade and opportunities are showing up all over the place.  And these opportunities create some great reasons to buy Breckenridge Real Estate.

The first is simply price.  Prices have fallen to 2005 levels

But, when I say “opportunities”, I’m not implying that there is an abundance of foreclosed properties and desporate owners begging to get out from under their properties.  However, there are some very good buys, that really make good financial sense, particularly

Investing in a Breckenridge Vacation Rental has become increasingly popular over the last decade, which isn’t surprising considering the potential benefits of owning a property located in one of the most desirable areas of the Rocky Mountains.
The obvious benefit is from the increasing value of properties in the Breckenridge, Colorado market, but vacation home owners can also benefit from rental income, which generates cash to offset the cost of owning the property as well as enhance the return on investment.  Lastly, the sheer enjoyment of owners’ and their families using the property as a family retreat, a place to create lasting vacation memories might well rank as the best reason of all.

While the general sentiment in the United State is that property values have taken a nosedive these last few years, Breckenridge, Colorado has remained surprisingly stable showing a positive increase in property values.  Most of the property owners have chosen to invest in Breckenridge because they’re passionate about the area and really feel connected, even though most only visit their homes a few weeks per year.  Additionally, most property owners in Breckenridge really don’t need to sell their properties if it means taking a large discount.  So they just continue to enjoy them and choose not to participate in the panic selling that’s going on in other areas of the country.
While overall sales volume may be down in Breckenridge, visitors are still coming in full force.  Owners of Breckenridge vacation rental properties are enjoying the cash flow created by the continuous stream of guests vacationing throughout the entire year.  Yes, there is more to Breckenridge than just skiing.  The summer is packed with events that continue to lure visitors and they all need a place to stay.
On the other hand, being successful as a vacation property owner certainly requires more work than just collecting rent checks and letting the property appreciate over time.   The real work comes in marketing and managing the property as a short-term rental.
To keep up with the competition in the highly competitive market, the property needs as much exposure to potential guests as possible.  This is achieved by advertising on local, national and international levels.  Today approximately 83% of travel research is done over the Internet.  Thus having a powerful presence on the web is critical.  This can take the form of a simple listing on a vacation rental website to “pay-per-click” advertising, daily blogging, social media networks, referral relationships with others in the industry, and the list goes on.
However, to compete successfully it’s nearly impossible for an individual who owns just one property to get the maximum performance out of the property because of the time and management commitment that goes into each home.
Working with a good vacation rental property manager is an absolute must, particularly one that has a strong Internet marketing and booking process.  To find out more about the benefits of professionally managing your vacation rental home, please contact Mark Gossman at Ten Peaks Lodging.  Maximizing your investment is the key to a successful return and certainly makes the whole property more enjoyable for your time as the owner.

If you’re questioning the value of using a real estate professional during the buying process, ask yourself some in-depth questions…and be honest with your answers.

• How well do I know the area where I’m looking to buy?
• How strong are my negotiation skills?
• How knowledgeable am I of local home values, taxes, utility info, and school data?
• How many times have I gone through the home-buying process? Twice? Ten times? Thirty times?
• How important to me is a smooth closing?
• How much free time do I have, and can I dedicate all of my efforts to this?

More ambitious buyers who choose to work extra hard can find out short, simple answers to some common questions. But as this report on whether buyers should use a real estate professional reminds us, it takes a full-time person within the field to be able to give credible, detailed, personalized answers.

Indications show that happy buyers are usually those who choose to work with real estate professionals rather than going it alone. And there are a variety of reasons. From ease-of-buying to added peace of mind after the closing, using a real estate professional, such as a Buyer’s Representative, just plain makes sense.

Breckenridge has such a diverse group of summer activities going on this year that it’s sure to attract a wide audience.

While last minute plans seem to be the preferred method of booking Breckenridge Lodging, don’t sacrifice quality when looking for that great last minute deal on a place to stay.

At Ten Peaks Lodging you’ll find a great selection of hand-picked properties around the town of Breckenridge. These luxury vacation rentals have been personally selected and inspected by the owners of Ten Peaks Lodging in Breckenridge for their location and amenities. Families or large groups will find that staying in a luxury vacation rental home can be more cost effective and provide space as well as all the comforts of home.

Be sure to check out all the events and places to dine at www.tenpeaks.com

In addition to declining sales, increased vacancies, and forced contract re-negotiations, the commercial real estate market is facing challenges regarding commercial mortgage delinquencies – just as the home real estate market has.

While commercial mortgage delinquencies are significantly lower than home mortgage delinquencies, they are rising. Just how much are they rising?

Check out this article from Realtor.org for the figures:

Commentary: Commercial Real Estate Faces Threat from CMBS Delinquencies

This article further details how rising commercial mortgage delinquencies lead to further danger even for well-performing properties because of the way these ventures are financed. Just check out the recent story of General Growth Properties, Inc. declaring bankruptcy, impacting over 150 of their well-performing retail properties. (Read more about General Growth Properties in this Wall Street Journal article.)

As detailed in our last blog post, “Are We in the Third or Fifth Inning of the Commercial Real Estate Game?”, the economy’s impact on commercial real estate is twofold. First, everyone has less money to spend. But, second, businesses are laying off employees. And fewer employees means a decreased demand for commercial office space.

This article from PropertyWire.com suggests “it will be survival of the fittest going forward” in the commercial real estate industry. But, the future can actually be bright for those who are able to survive.

They say that strong investors will be able to capitalize on buying opportunities that emerge as loans default and distressed assets increase.

Read more about how these buying opportunities could lead to a bright future at the end of the tunnel in this article:
Bargain prices could help US commercial real estate market recover

- Mark Gossman, Minnesota Real Estate Broker